Service Marketing

NIEC 2012/ BY ASHIMA KAPOOR

Service Industry Contribution in an Economy

1. India ranks fifteenth in the services output .

2. Service sector provides employment to around 23% of the total workforce in the country.

3. The Sector of Services in India has the biggest share in the country's GDP for it accounts for around 53.8% in 2005.

4. the Services Sector in India accounts for over half of the country's GDP.

Services
Any activity or benefit that one party can offer to another that is essentially intangible & does not result in the ownership of anything. Its production may or may not be tied up to a physical product.

Definition 2
Deeds, processes, performances

Open system view of services

Service Ki Duniya
Professional services
Lawyer, architect, estate agent

Medical services
Hospitals, clinics, ambulances

Hospitality
Restaurants, hotels

Travel and Tourism

Airlines, railways, guides

Utilities
Reliance Energy, BEST

Retail Finance, IT, consulting, BPOs, couriers, advertising Telecom

Telephony, VAS providers, location-based operators

The Internet The entertainment economy! And the strange ones

Sneaker washer, Dog food dabba, gaming grunt, life coach

Prodices & Serducts

Tangibility Spectrum

Very few pure services or pure products Most offerings are a varying mix of both Some products deliver intangible benefits; or add a smattering of service to differentiate. Some services have a physical component

Prodices and Serducts: Exercise

Hyundai i20 Yash Raj Films Pakistan Cricket Team Barack Obama McDonalds MDH Chana Masala Accenture Bisleri

Spectrumated
MDH Chana Masala Bisleri Hyundai i20

McDonalds
Yash Raj Films Accenture Barack Obama/Pakistan cric

Why Service Marketing

Some exam Your career The entire economy

Products vs. Services

Tangible vs. Intangible
Cannot be inventoried, patented, displayed, priced

Standardised vs. Heterogenous

Production & Consumption

Separate vs. simultaneous

Delivery, quality and satisfaction depend on many factors

Nonperishable vs. perishable

Customers participate, affect each other and transaction; mass production is difficult

Supply and demand; return and second-hand sale

Services Vs Goods
Services
Intangible Heterogeneous Produced in Buyer Seller interaction Production, distribution & consumption takes place simultaneously Consumers participate in production Cannot be stored Transfer of ownership cannot take place

Goods
Tangible Homogenous Produced in factory All three are separate & independent

Consumers dont generally participate Can be stored Transfer of ownership does take place

Characteristics of Services

Classification of Services
It is required to design & apply marketing techniques to completely satisfy the customer & increase profits & identify new emerging services. Classifications can be done on following basis: Classification by Industry Classification by Target Effect Skill level of service provider (Professional/ Nonprofessional) Labor intensiveness (People-based/Equipment-based) Degree of customer contact (High / Low) Goal of the service provider (Profit /Nonprofit)

Classification By Industry
Entertainment industry Education Telecommunications Finance & Insurance Transportation Public utilities Government services Health Hospitability Industry Business services Telecommunications Trading

Classification of Services
Based on Degree Of Customer Involvement: ( Lovelock) People Processing: Services aimed at physical care e.g. Healthcare, clinics, restaurant, hospitals, hair stylists, fitness centers Mental Stimulus Processing: Services aimed at mind of customer e.g. Education, information, entertainment, consulting, psychotherapy Possession Processing: Services aimed at physical possession & tangible assets e.g. repair & maintenance, laundry, repair services, landscaping, house cleaning services Information Processing : Services for intangible assets e.g. Banking, legal consultation, brokerage, financial services.

Skill level of service provider

Teacher
Doctor Engineer Accountant

Labor intensiveness
Mechanic Electrician

Labor
Plumber Artisan

Degree of customer contact

High Degree (Every day) TV channels, mobile etc. Moderate Degree (Regular) Teacher, Barber, washer man etc.

Low Degree ( Occasional ) Priest, Doctors etc.

Service/Product Bundle
Element
Business Core Peripheral Goods Peripheral Service Variant

Core Service Example Custom clothier Business hotel

Business suits Garment bag Deferred payment plans Coffee lounge Rooms Bath robe In house restaurant Airport shuttle

CoreGoods Example

The Service Process Matrix

Degree of labor Intensity Degree of Interaction and Customization Low Service factory: * Airlines * Trucking * Hotels * Resorts and recreation Mass service: * Retailing * Wholesaling * Schools * Retail aspects of commercial banking High Service shop: * Hospitals * Auto repair * Other repair services Professional service: * Doctors * Lawyers * Accountants * Architects

Low

High

(Nature of the Service )

Direct Recipient of the Service Nature of the Service People Peoples bodies: Health care Passenger transportation Beauty salons Exercise clinics Restaurants Peoples minds: Education Broadcasting Information services Theaters Museums Things Physical possessions: Freight transportation Repair and maintenance Veterinary care Janitorial services Laundry and dry cleaning Intangible assets: Banking Legal services Accounting Securities Insurance

Tangible actions

Intangible actions